Global telcos are facing declining margins in traditional connectivity and network services. As a result, they find themselves at a defining juncture in their future direction. Do they remain as network-connectivity providers, or move up the value chain and become service creators and innovators? For many, the answer will be both, leveraging the core capabilities of networks,connectivity and global data center footprints, with the development of cloud services, content and wider ICT and managed services. In order to achieve this, telcos will need to implement the following measures:
- Align themselves to the changing requirements of global enterprises, local organizations and consumer demands, not only to survive but also to maximize their position in the markets they serve.
- Rethink business models, structures and market offerings, untangling infrastructure, removing cost and complexity from the business, and delayering noncore operational roles and structures.
- Innovate when it comes to their services and become enablers of key industry developments, bringing ecosystems together in order to drive innovation.
- Innovate networks, using virtualized services to offer simple and flexible centralized control, while also further converging networks to deliver even greater efficiency and value to customers.
- Continue to develop international capabilities, supporting organizations withglobal networking, data and mobile services in developing economies and empowering local organizations.